ANZ prefers Systematics to Hogan

Seven years after buying National Bank in New Zealand, ANZ is ready to drop one of its two core banking platforms and proceed with the better of two.

In New Zealand that is Systematics. Although it is a little-used system in the region, ANZ rates it as better than its Hogan platform.

The aim is to introduce National Bank's core banking system across ANZ's networks by late 2011.

Ditching Hogan is an interesting choice.

When ANZ bought NBNZ, in 2003, the goal, which was assumed in the plan cleared by the board, was for a speedy transfer of New Zealand banking business processing on to an Australian processing platform.

The Reserve Bank of New Zealand headed off that plan and set in place a parochial model in which local New Zealand banks, whatever the origins of their owners, must follow their own path.

ANZ has taken its time making its choice of which IT path to follow. The choice, announced today, was on the agenda two years ago.

ANZ has also dithered for the same seven-year period over taking straightforward steps to bring its two retail banking entities in New Zealand closer together.

The bank has charged customers NZ$3 to make deposits in the "wrong" brand of ANZ in New Zealand. This fee will disappear in January 2011.

Fidelity National Information Services is the supplier of Systematics.